Attorney Sean Ramsden is threatening to liquidate the Direct Marketing Association of SA (DMASA) over an unpaid bill of R44 000.
Ramsden successfully acted on behalf of the association in an arbitration case it initiated against a supplier that was paid but failed to deliver. He says the fee of R100 000 has been due since just before the festive break.
However, despite the DMASA's promise to settle the account by the middle of this month, Ramsden says he has yet to be paid the balance of his R100 000 fee and is still owed R44 000.
Ramsden says the DMASA's failure to pay him has put his firm in financial difficulty and affected his personal cash flow. “I will liquidate them for this.”
Ramsden says he will file papers with the Randburg Magistrates Court early this week in a bid to get it to force the association to settle the outstanding amount. He will also seek costs of the action and interest at 15.5% from when papers are served on the association until payment is made.
If Ramsden is successful and the association still does not pay up, he will bring a liquidation application in the South Gauteng High Court. “The DMASA is forcing me to go to court for no rhyme or reason.”
Wanting clarity
However, the association's COO, Alastair Tempest, says Ramsden should not be claiming the fee just because he won the arbitration. He says the association is battling to get the settlement out of the company against which it took action.
“Ramsden worked for us for three months on this and we achieved an award by arbitration, which was uncontested by the supplier,” explains Tempest. He says, however, the supplier has not paid the amount and the DMASA would have to institute more legal proceedings to get the outstanding sum.
Tempest says Ramsden claims he should be paid simply on the basis of the arbitration award, and not on the final amount which the association may get from the supplier, but has already been paid R56 000.
The DMASA's board has decided that, before paying him the rest of the contingency fee he is claiming, it will ask for advice on contingency fees. “We are presently in this process and, as it is sub judice,we cannot comment further.”
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